For pdf version please click here

For immediate release

PT Fajar Surya Wisesa Tbk secures long-term loan facilities with two Export Credit Agencies and PROPARCO

Jakarta, May 14, 2011 – PT Fajar Surya Wisesa Tbk (the “Company”) is pleased to announce that, on May 12th, 2011, the Company secured EUR 12.58 million in a OeKB supported term loan facility, which was facilitated by The Hongkong and Shanghai Banking Corporation (“HSBC”). Earlier this year, on February 1, 2011, the Company secured EUR 9 million in a Finnvera supported term loan facility through HSBC as well. Both facilities have a tenor of 10 years and the proceeds from both facilities will be used to modify an existing paper machine (“PM7”). Through the modification of PM7, we aim to increase its capacity from 200,000 tonnes per annum (“tpa”) to 330,000 tpa, to improve the quality of the product, to improve its energy efficiency. The modification of PM7 is estimated to cost approximately USD 40 million.


Also on May 12th, 2011, the Company secured a USD 10 million senior loan agreement with PROPARCO, a French development financial institution. The facility has a tenor of 8 years. This loan will be used to finance the construction of our second incinerator, which is currently underway and expected to be completed in June 2011. The incinerator will be used to treat the Company’s wastes and it is also expected to generate about 10% of the steam required for our production process. Thus, this project should not only help to create a cleaner and healthier environment by burning wastes instead of sending these wastes to landfills, but should improve the energy efficiency of our production process as well.

Mr. Winarko Sulistyo, President Director of the Company commented: “Having secured financing facilities from two export credit agencies (Finnvera and OeKB) and Proparco is another big achievement of the Company. In the past, the Company relied only on commercial banks and high yield bond market, now the Company diversified its funding sources with longer tenor and lower financial cost.” He added: “This is a testament of lenders’ trust, good corporate governance, greater transparency and environmental driven business in the Company.”

On May 11, 2011, the Company cancelled USD 50.1 million of the USD 100,000,000 10.75% Guaranteed Senior Secured Notes due 2011 (the “Notes”). The Notes are due on October 31, 2011. Following this cancellation, a total of USD 49.9 million of the Notes remains outstanding. On October 22, 2010, the Company secured USD 120 million loan facility for the refinancing of the Notes.

Our Annual General Shareholding Meeting (the “AGSM”) was held on May 12, 2011 and it was decided at the AGSM that the Company will distribute a cash dividend of Rp 45 per share or approximately Rp 111 billion (39.4% of 2010 net income).




PT Fajar Surya Wisesa Tbk is a leading packaging paper producer in Indonesia with manufacturing facilities in Cikarang Barat-West Java. Products manufactured include coated duplex board, linerboard and corrugated medium paper. With current total installed capacity of 1,000,000 tpa, the Company uses 100% recycled paper as its raw material. The Company was established in 1988 and has been on the Indonesia Stock Exchange’s listing (FASW.JK) since 1994. For more information, please visit

Proparco, a French Development Financial Institution that is partly owned by Agence Française de Développement (“AFD”), with private shareholders from North and South. PROPARCO’s mission is to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the Millennium Development Goals. PROPARCO is one of the largest bilateral private sector development banks worldwide. PROPARCO invests in a geographical area ranging from major emerging countries to the poorest countries, in particular in Africa, and has high-level requirements in terms of Social and Environmental Responsibility. For more information, visit

Finnvera is a specialized financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland. Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports. Finnvera strengthens the operating potential and competitiveness of Finnish enterprises by offering loans, domestic guarantees, venture capital investments, export credit guarantees and other services associated with the financing of exports. Finnvera gives guarantees against political or commercial risks associated with the financing of exports. For more information, visit

Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) is Austria’s main provider of financial and information services to the export industry and the capital market. OeKB plays a critical role in the Austrian economy as the country’s sole agent for the administration of export guarantees and export financing. The Austrian government guarantees, delivered by OeKB, minimize the political and commercial risks of export transactions. OeKB offers a wide range of specialised services to companies in all sectors and acts as a central hub in the markets, operating impartially and in accordance with its sustainability policy. Its shareholders are Austrian commercial banks. For more information, visit

Leave a Comment

Your email address will not be published. Required fields are marked *